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If I invest 3 million. I will earn an additional 400k for the next decade. Should...

If I invest 3 million. I will earn an additional 400k for the next decade. Should I make this investment? Why?

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Answer #1

Considering it as simple interest payout...it means per year income earned is 400k/10 = 40,000 per year.

Then, 40,000/3000,000 = 1.33%

Earning just 1.33% on the investment is not a worth investment because even depositing in risk free securities gives better returns. So i believe this is not a right investment considering other options available in the market.

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